REQUIRED:
Create a spreadsheet with TWO sheets:
Data
Graph
Graph Requirements:
Prepare a visual of overhead costs for Fudge and Cookies, comparing two costing methods (volume-based with Activity-based), on a PER-UNIT basis.
Label your data points, rounded to two decimal places
Your file does not have to exactly match the tutorial. Be creative and do what makes sense to you!
DO:
Communicate clearly and cleanly! KISS principle.
DO NOT:
Confuse your audience. I should be able to interpret accurately what is being presented in the visual.
SCENARIO:
Wellington Chocolate Company uses plantwide overhead rate, based on oven hours.
They are considering changing to activity-based costing (ABC).
The controller identified two activities and their budgeted
costs:
Setting up equipment $432,000
Other overhead $1,440,000
Setting up equipment is based on setup hours, and other overhead is
based on oven hours.
Wellington produces two products, Fudge and Cookies. Information on
each product is as follows:
Fudge Cookies
Units produced 8,000
445,000
Setup hours 6,400
1,600
Oven hours 1,600
8,000
REQUIRED: Create a spreadsheet with TWO sheets: Data Graph Graph Requirements: Prepare a visual of overhead...
OBJEC Exercise 5-39 Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment $ 432,000 Other overhead 1,440,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. (Continued) Wellington produces two products, Fudge and Cookies. Information on each prode as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 6,400 1,600 Oven hours 1,600 8,000 Required: (Note:...
Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment Other overheard $840,000 $5,400,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Units produced Setup hours Oven hours Fudge 8,000 12,000 5,000 Cookies 145,000 3,000 35,000 How much Total Overhead is assigned to the Product Line - Fudge? Do...
Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment $1,026,000 Other overheard $4,104,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 15,200 3,800 Oven hours 3,800 26,600 Required: Round your answers to the nearest whole dollar, unless otherwise directed. 1....
Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment $230,000 Other overheard $1,240,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 4,000 1,000 Oven hours 1,000 7,000 Required: Round your answers to the...
Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment $754,000 Other overheard $2,912,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 10,400 2,600 Oven hours 2,600 18,200 Required: Round your answers to the...
Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment $420,000 Other overheard $6,400,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 5,600 1,400 Oven hours 5,000 35,000 Required: Round your answers to the...
Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment $378,000 Other overheard $9,240,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 7,200 1,800 Oven hours 7,000 49,000 Required: Round your answers to the...
eBook Calculator Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment $986,000 Other overheard $6,264,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 13,600 3,400 Oven hours 5,800 40,600 Required: Round your answers...
eBook Calculator Comparing ABC and Plantwide Overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment $572,000 Other overheard $5,600,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 445,000 8,000 10,400 Setup hours 2,600 Oven hours 5,000 35,000 Required: Round your answers...
Setting up equipment $680,000 Other overheard $4,488,000 Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 13,600 3,400 Oven hours 3,400 23,800 Required: Round your answers to the nearest whole dollar, unless otherwise directed. 1. Calculate the activity rate for (a) setting up equipment and (b) other overhead. a. Setting up...